Which term describes the transfer of specific business functions to outside parties?

The term that describes the transfer of specific business functions to outside parties is outsourcing. This practice involves hiring external organizations or individuals to handle certain tasks or services that could otherwise be performed internally. Companies choose to outsource for various reasons, including cost savings, access to specialized expertise, increased efficiency, and the ability to focus on core business activities by relieving themselves of non-essential functions.

Outsourcing can encompass a wide range of activities, from customer service and IT services to manufacturing and human resources. It allows organizations to leverage the capabilities of third-party vendors, enabling them to scale operations and improve operational flexibility.

Internal staffing refers to filling positions within the organization rather than relying on outside resources, while delegation involves assigning responsibility and authority for specific tasks to subordinate employees within the organization. Partnership denotes a collaborative relationship between two or more parties, often involving shared goals and resources, rather than an outright transfer of responsibilities to an external entity.